Nvidia was one of the most overbought names on Wall Street this week as the artificial intelligence darling crossed the $3 trillion market cap threshold. The stock was the ninth most overbought equity this week, registering a 14-day relative strength index reading above 74. The RSI, which measures the magnitude and speed of price moves, is a popular metric used to evaluate whether shares are overbought or oversold. A stock with a 14-day RSI below 30 is considered oversold, meaning it could be a smart entry point for investors. On the other hand, names like Nvidia with a 14-day RSI above 70 are thought of as overbought, indicating a possible selling opportunity. Nvidia shares have climbed more than 8% this week alone, eclipsing the $3 trillion market cap mark to become the second-most valuable U.S. company, behind Microsoft . Year to date, the stock has surged more than 140% as the AI craze continues. This move comes amid a strong week for the market to kick off the new trading month. The tech-heavy Nasdaq Composite has outperformed with a gain of more than 2% this week, while the S & P 500 and Dow Jones Industrial Average have each added around 1%. Yet investors bought into some names more than others. Costco clocked the highest RSI, topping 80 as shares rallied about 4% over the week. The stock is now up by more than 28% on the year. But Wall Street isn’t sure these strong performances can hold up. While both Costco and Nvidia have buy ratings from the typical analyst, the average price target implies the former slipping more than 1% and the latter shedding just over 2% in the next 12 months, per FactSet. Well-known stocks including T-Mobile , Walmart and Best Buy were also among the most overbought this week. Here’s the full list: Meanwhile, some of the stocks that sat out of this week’s advance could be due for a bounce. Staffing agency Robert Half was the most oversold with an RSI below 16. Shares slipped about 2% this week, bringing the stock’s year-to-date slide to over 29%. Wall Street is expecting a bounce. Though the average analyst polled by FactSet has just a hold rating, their price target implies approximately 11% in upside. Further down the list, Epam Systems posted an RSI of around 25. The software stock slipped around 1.5% this week, pushing its 2024 loss to just over 41%. Similarly, analysts see a turnaround ahead. The typical analyst surveyed by FactSet has a buy rating with a price target suggesting shares can rally more than 28%. Here’s the full list of oversold names this week:
